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A relatively new technique for performing valuation under uncertainty, value at risk (VaR), has been developed in the financial world.
Under Merrill's optimistic scenario, it might soon justify a $30 valuation; under the conservative scenario its price target would be only $10.
Sanders and Boivie (2004) suggest that such socio-economic sorting is important for valuation under high uncertainty and conflicts of interest.
(Good-deal valuation under combined uncertainty) Let X be a (mathcal {F}_{t} -measurable claim in (mathbb {L}^{2}(mathbb {F}_{t} -measurable
Hedging and valuation under model uncertainty (ambiguity) about volatility has been a seminal problem in the topical area of robust finance.
We study robust notions of good-deal hedging and valuation under combined uncertainty about the drifts and volatilities of asset prices.
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But the squawking shows just how much noise a few fat geese can make, with wild talk about mansion tax dangers: people will brick up their expensively dug-out basements and seal off their loft conversions to keep their valuations under £2m.
"Balance sheet cleansing and de-levering will only continue to keep asset valuations under pressure and the probability of continued write-downs high, in our view".
But more generally, funding is getting harder for a number of startups, with valuations under pressure for many.
The latter is an essentially semantic relation that holds between some premises and some other claim such that on all valuations under which the premises are all true, so is that other claim.
Despite the lack of closed-form expression for valuations under combined uncertainties, still, some further insight can be obtained by investigating simply the sensitivity of the robust good-deal bound (pi ^{u}_{cdot }(X)=:pi ^{u}_{cdot }(X gamma)) with respect to a (fixed constant) drift γ of the non-traded asset L, solely under volatility uncertainty.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com